Ask Question
23 September, 10:18

A company enters into a contract to sell 50 products to a customer for $30 each. After the company transfers 30 of the 50 products, the customer wants an additional 25 products. The contract is modified and the additional 25 products are priced at $15 each, a price that is not reflective of the standalone selling price. What is the price per product for the remaining 45 products (20 products from the original contract and 25 products from the modification)

+3
Answers (2)
  1. 23 September, 10:33
    0
    (20/45 x $30) + (25/45 x $15) = $21.66

    Explanation:

    Since the contract is modified and the additional 25 products are priced at $15 each, a price that is not reflective of the standalone selling price.

    Therefore the price will be shown as a blending of the existing price of $30 because it is not entirely a new contract but a modification

    The price per product for the remaining 45 products (20 products from the original contract and 25 products from the modification) will be:

    (20/45 x $30) + (25/45 x $15) = $21.66
  2. 23 September, 12:35
    0
    Answer: $975

    Explanation:

    20 products from original contract

    =$30 X 20 = $600

    25 product from the modification

    = $15 X 25 = $375

    $600 + $375 = $975
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company enters into a contract to sell 50 products to a customer for $30 each. After the company transfers 30 of the 50 products, the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers